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Energy Department expands eligibility for clean fuel tax credit

The Energy Department on Friday expanded the range of companies and producers that can claim the clean fuel production tax credit under Democrats' climate law — delivering a win for biofuels proponents on a tax incentive that was the subject of intense debate under the Biden administration. The Trump administration announced it was updating the modeling tool used to determine eligibility to claim the credit, which it said would account for new feedstocks and methods of production like ethanol from corn wet-milling and natural gas from coal mine methane. Lou Hrkman, principal deputy assistant secretary for energy efficiency and renewable energy, said in a statement the latest version of the modeling tool will allow more farmers 'to reap the benefits of a rapidly expanding market for alternative transportation fuels.' Advertisement The department also released an updated user manual that provides guidelines for how to determine life-cycle greenhouse gas emissions of certain production pathways.